Subsidized fuel use in 2011 may exceed target by 16%

Indonesian subsidized fuel consumption next year may hit 42.6 million kiloliters (kl), exceeding the target in the 2011 draft budget of 36.8 million kl by 15.7%, a senior official said. “There will be an increase of vehicles sales next year. So we are sure subsidized fuel consumption will likely hit 42.6 million kl if the government does not limit it,” chairman of Indonesia’s downstream regulator BPH Migas Tubagus Haryono said. The government is aiming to spend 92.8 trillion rupiah (US$10.3 billion) on fuel subsidies next year, a 4.4% increase from this year’s 88.9 trillion rupiah (US$9.9 billion), Finance Minister Agus Martowardojo said in August. Indonesia has allocated 36.5 million kl of subsidized-fuel quotas this year. However, BPH Migas estimates the overall quota will be exceeded by 10%. (September 17, 2010)